The yellow metal took a big hit in 2013, registering its biggest drop in last three decades, as the super cycle in commodities got challenged and the basket made a U-turn.

How will 2014 be for gold?

"There are huge shorts that have developed in precious metals as you know. So, it's overdue for a rally. We had a big drop in 2013. Everybody got negative, everybody got short. So, we are going to have a rally," says Commodities Guru Jim Rogers.

"After the rally, the year will see it going down again and hopefully finally we will make a nice bottom and we can buy gold again," he says.

Is silver looking a better investment than gold?

"I would prefer silver to gold. I am not buying either at the moment. Silver is down 60% from its all-time high, gold is down 30-35% from its all-time high. But i won;t buy just because they are down," says Jim Rogers.

On the last trading day of 2013, the yellow metal slipped to a six-month low, making for its biggest annual decline in 32 years.

The reason is attributed to rising prospects for global economic recovery, which is making investors switch to riskier assets.

After seeing a bull run over the past 12 years, the metal shed 28% in 2013, with the US Federal Reserve deciding to begin the tapering of its 85-billion-dollar-a-month easy monetary policy. This undermines an investor's rationale for holding the metal.

On Friday, gold prices fell by Rs 80 to Rs 29,970 per ten grams in the national capital, as stockists sold against sluggish demand at prevailing higher levels.

Silver also declined by Rs 200 to Rs 44,600 per kg on lack of buying support from industrial units and coin makers.

In Mumbai, gold of 99.9 and 99.5 per cent purity dipped by Rs 55 each to Rs 29,880 and Rs 29,730 per ten grams, while silver lost Rs 400 at Rs 45,000 per kg.

Traders said stockists selling on sluggish demand at prevailing higher levels mainly kept pressure on the two commodities.

At the domestic front, gold of 99.9 and 99.5 per cent purity fell by Rs 80 each to Rs 29,970 and Rs 29,770 per ten grams, respectively, while sovereign held steady at Rs 25,000 per piece of eight grams.

Similarly, silver ready declined by Rs 200 to Rs 44,600 per kg and weekly-based delivery by Rs 300 to Rs 44,500 per kg.

Silver coins, however, continued to be asked at last level of Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces.